RSSKorean iPod Rivals Cry Foul
By Ed Oswald | Published September 9, 2005, 3:27 PM
Korean rivals of the iPod are beginning to feel the squeeze of Apple's strength in the market, and some are even going as far as to accuse the company of collusion with fellow Korean electronics manufacturer Samsung.
The Korea Times reported Friday that while companies would not comment on the iPod Nano directly, several expressed concern that Apple's policy of competitively pricing its players were affecting their bottom line.
The 2GB nano will retail for USD $199 and the 4GB for USD $249. In comparison, similar players made by Korean manufacturers cost much more. While the companies believe that their position within the Korean market is safe, some worry that the Nano could grow Apple's market share in the flash-based category and thus in the market overall.
"Korean consumers are not as fond of Apple products as U.S. and Japanese consumers," Kim An-na, public relations manager of ReignCom, the manufacturer of the iRiver told the Times. "Although Apple's foray into the flash model segment is quite intimidating, we will cope with the threat by positioning of our products differently, as we have done with the U10."
Smaller rivals such as Cowon plan to lower their prices as the prices of flash memory continue to drop, and are drawing up plans to deal with Apple's latest player. However, smaller rivals may be pushed to exit the market due to downward price pressures.
These moves, along with Apple's recent purchase of up to 40 percent of Samsung's flash memory stock, has some rivals in Southeast Asia crying foul. Some think the two companies are colluding to push others out of the way by forcing them to lower prices to the point of near bankruptcy, the paper claims.
To its defense, Samsung said no special deal was given to Apple in order for it to be able to continue to drop the price on its flash-based players.
Apple has not commented on the accusations, but said it would be holding a press event on September 22 to launch the Nano in Korea.
LOL!!! OK, so its cool that Korea has taken literally tens of thousands of US jobs in the heavy industries (auto, steel, etc). But let Apple, a MINORITY player in every region of the planet try to move in, and their probably gonna be screaming for protectionism again. Nothing new here, they did this when they failed to become the new darling of offshoring for American software development. American companies know their code will be promptly stolen and remarketed as a Korean product because Korean programmers are better pirates than they are coders. Now Korean-made programs, no matter how inferior, are given special protection by their trade authorities. In fact, huge restrictions are placed on nearly any import that might affect Korean industry. I like Asians of all stripes but I hate their dirty trade tactics. On a level playing field Americans can match anybody and even exceed a lot of foriegn industries. Your local Chinese resteraunt employs more Mexicans than a tomato farm, and unlike Wal-Mart, "Yu Wing, We Bwing" will never get busted.
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|They do have a Walmart in South Korea
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|There is an old saying "If you can't stand the heat, get out of the kitchen". Apple is a business, not a charity. If its competitors can't take the heat then they should not bring about their own ruin by competing. If I fight a guy twice my size I can expect to be pulverized. It is that simple.
On the other hand, competition is the only thing that will drive MP3 player prices down. The fact that Apple is making a killing in this market is clear evidence that it is streets ahead of its rivals. Apple's hardware component buying power is no surprise either. I think the public would be shocked if they knew exactly how little it cost Apple to make an iPod.
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|Koreans and japanese don't love each other..
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|Its amazing that after years of murdering Koreans at the hands of violent sadistic Japanese, that you would even think that they would hold a grudge :)
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|I guess there are no Wal-Marts in Korea
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|Wow. Accusing one's friend of one's own fault...
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|Sounds like Korean businesses don't like healthy competition, which is beneficial for consumers.
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